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Sable - The unaudited group results for the half-year ended 31 December 2005
SABLE HOLDINGS LIMITED
("SABLE")
(Registration No. 1968/010636/06)
Share code: SBL & ISIN code: ZAE00006383
Interim Report
The unaudited group results for the half-year ended 31 December 2005 are as
follows:
Abridged Consolidated Income Statement
Six months Six months Year
ended ended ended
31 Dec 2005 31 Dec 2004 30 Jun 2005
(Unaudited) (Unaudited) (Audited)
R"000 R"000 R"000
Revenue 15,002 9,102 37,192
Operating profit 5,262 4,195 12,817
Net interest paid (2,107) (3,602) (7,248)
Depreciation (182) (345) (787)
Impairment of loans - - (328)
Dividends received 774 232 294
Profit on disposal of
investment properties - - 17,340
Profit on disposal of
operating assets - - 25
Revaluation of investment
properties - - 6,471
Profit before taxation 3,747 480 28,584
Taxation (662) (1,011) (3,439)
Profit/(loss) after taxation 3,085 (531) 25,145
Profit from associated
companies 3,411 1,737 11,964
Net profit for the period 6,496 1,206 37,109
Number of ordinary shares
in issue during the period
excluding treasury shares
(`000) 7,506 7,506 7,506
Earnings per ordinary share
(cents) 86.5 16.1 494.4
Headline earnings per
ordinary share (cents) 88.0 15.3 175.2
Dividend per ordinary
share (cents) - - 50.0
Reconciliation - headline earnings and distributable earnings
Net profit for the period 6,496 1,206 37,109
Adjustments:
Straight-line rental income accrual
- subsidiaries 106 (56) (220)
- associates - - 24
Impairment of loans - - 328
Profit on disposal of investment
properties - - (16,872)
Profit on disposal of operating
assets - - (17)
Revaluation of investment properties
- subsidiaries - - (5,492)
- associates - - (1,709)
Headline earnings for
the period 6,602 1,150 13,151
Abridged Consolidated Balance Sheet
Six months Six months Year
to to to
31 Dec 2005 31 Dec 2004 30 Jun 2005
(Unaudited) (Unaudited) (Audited)
R"000 R"000 R"000
Assets
Non-current assets 213,984 158,420 165,118
Property, vehicles
and equipment 138,999 104,799 94,950
Investments - other 32,784 26,641 31,220
Investments - associates 40,126 26,234 36,509
Company held for resale 350 350 350
Deferred taxation asset 248 19 612
Goodwill 1,100 - 1,100
Loans receivable 377 377 377
Current assets 22,230 39,686 29,532
Inventories 10,310 4,528 6,212
Trade and other receivables 8,086 32,659 14,496
Cash and cash equivalents 3,834 2,499 8,824
Total assets 236,214 198,106 194,650
Equity and liabilities
Capital and reserves 146,068 107,222 143,325
Share capital and premium 18,397 18,409 18,397
Non-distributable reserves 37,743 24,105 34,332
Revaluation reserves 27,381 24,537 26,352
Retained profits 62,547 40,171 64,244
Non-current liabilities 69,488 61,068 35,279
Interest-bearing
borrowings 67,893 59,623 33,684
Deferred taxation
liability 1,595 1,445 1,595
Current liabilities 20,658 29,816 16,046
Trade and other payables 6,089 4,158 11,254
Interest-bearing
borrowings 10,043 21,407 973
Interest-free borrowing - - 210
Current portion of interest-
bearing borrowings 3,539 3,496 2,284
Shareholders for dividends 40 17 17
Taxation payable 947 738 1,308
Total equity and
liabilities 236,214 198,106 194,650
Number of ordinary shares
in issue (`000) 8,420 8,420 8,420
Less: Treasury shares (`000) (914) (914) (914)
7,506 7,506 7,506
Net asset value per ordinary
share (cents) 1,946 1,428 1,909
Interest-bearing liabilities
to total capital and
reserves (%) 55.8 78.8 25.8
Abridged Consolidated Cash Flow Statement
Six months Six months Year
ended ended ended
31 Dec 2005 31 Dec 2004 30 Jun 2005
(Unaudited) (Unaudited) (Audited)
R"000 R"000 R"000
Cash outflow from operating
activities (4,877) (26,612) (5,149)
Cash generated by operations 3,698 4,944 8,505
Movements in working capital (2,853) (23,605) 273
Net interest paid (2,107) (3,602) (7,248)
Dividends received 774 232 294
Dividend paid (3,730) (2,635) (2,635)
Taxation paid (659) (1,946) (4,338)
Cash (outflow)/inflow from
investing activities (44,437) 13,649 45,897
Cash inflow/(outflow) from
financing activities 35,254 949 (26,003)
Net (decrease)/increase in
cash and cash equivalents (14,060) (12,014) 14,745
Cash and cash equivalents at
the beginning of the period 7,851 (6,894) (6,894)
Cash and cash equivalents at
the end of the period (6,209) (18,908) 7,851
Abridged Statement of Changes in Equity
Six months Six months Year
ended ended ended
31 Dec 2005 31 Dec 2004 30 Jun 2005
(Unaudited) (Unaudited) (Audited)
R"000 R"000 R"000
Balance at beginning of the period
- previously reported 143,325 109,334 109,334
Change in accounting policy - - 212
Restated balance at beginning
of the period 143,325 109,334 109,546
Net profit for the period 6,496 1,206 37,109
Repurchase of shares by
subsidiary - (674) (686)
Dividend paid (3,753) (2,644) (2,644)
Balance at end of the period 146,068 107,222 143,325
Comments
Basis of preparation and accounting policies
The unaudited group interim results, for the six months ended 31 December 2005,
have been prepared in accordance with IAS 34, Interim Financial Reporting, and
are covered by International Financial Reporting Standard ("IFRS") 1, First-time
Adoption of IFRS. The results incorporate policies which are consistent with
those applied in the previous period.
Transitional arrangements
The group"s transition to IFRS has been established as at 1 July 2004. Opening
balances at 1 July 2004 have been restated to reflect all existing IFRS
statements applicable.
Financial results
The group reported a net profit of R6.5 million (December 2004 - R1.2 million)
for the period ended 31 December 2005.
Earnings per share increased by 437% from 16.1 cents to 86.5 cents, with
headline earnings per share increasing by 475% from 15.3 cents to 88.0 cents.
Operating profits are represented as follows:
Dec 2005 Dec 2004 Jun 2005
R"000 R"000 R"000
Property investments and
trading 3,820 5,010 9,098
Treasury investments 1,442 (815) 3,719
5,262 4,195 12,817
The net asset value per share increased from R19.09 to R19.46 at December 2005.
Group long-term borrowings increased by 102% to R67.9 million (June 2005 - R33.7
million) as a result of various acquisitions and development of investment
properties.
Acquisitions and developments
Sable has acquired investment properties amounting to R39.2 million during the
period, comprising industrial and office parks. In addition, a 6,500m2 retail
shopping centre is currently being co-developed by Sable Holdings in Randburg,
Johannesburg.
The R58.0 million project is expected to be completed in August 2006 and will be
tenanted by nationally branded stores.
Treasury investments
Group treasury investments increased from R31.2 million to R32.8 million at
December 2005. Rand strengthening of 4.9% impacted The PSG Global Hedge Fund
negatively, whilst the US$-based fund price improved by 7.4%. The domestic share
portfolio managed by BOE Securities (Pty) Ltd again performed well by increasing
the investment value from R3.3 million to R4.3 million during the period.
Associate investments
Sable Homes, of which Sable Holdings has a 45% interest, added net earnings of
R3.4 million during the period, mostly from the development and resale of stands
in residential housing estates in the Gauteng area.
Prospects
Sable Holdings currently has investment properties of R37.9 million under
contract, comprising industrial parks and a retail shopping centre. Profits from
the sale of industrial parks are likely to be realised in the second half of the
year. Sable Holdings has also negotiated investment stakes in material retail
and residential developments in Pretoria.
Dividends
As is customary, no dividend has been declared for the six months ended 31
December 2005.
For and on behalf of the board
J Nash (Chairman)
PH Nash (Managing director)
29 March 2006
Directors: J Nash* (Chairman), PH Nash (Managing),IR Kemp, JA Pelser*
*Non-executive
Registered office: Sable Place, Fairway Office Park, 52 Grosvenor Road,
Bryanston 2021. PO Box 786390, Sandton 2146.
Transfer secretaries: Computershare investor Services 2004 (Pty) Limited, 70
Marshall Street, Johannesburg. PO Box 61051, Marshalltown 2107.
Sponsor: Sasfin Corporate Finance - A division of Sasfin Bank Limited
Date: 29/03/2006 03:12:12 PM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
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